The mining industry has been around for centuries and has played a vital role in the global economy. However, in recent years, the mining industry has faced challenges in attracting capital, especially from non-traditional investors such as family offices. During PDAC 2023, Prospector had the honor of co-hosting a Mining Futurist party and panel! Moderated by Emily King, the panelists included:
The theme of the panel was discussing what family offices and mining companies need to know about each other in order to drive non-traditional investment back into the industry.
"There's probably been such a long pause of family offices really looking at mining as an investable industry that it's almost like the new "dot com". I really think that there is an opportunity here ... and I think what is old is new again." - Steve S.
Family offices have historically been hesitant to invest in mining due to its risky and inconsistent reputation. However, as Miranda points out, the people, projects, and opportunities in the mining industry are phenomenal. The timing for family offices to look at the mining sector is now more favorable than ever. The industry is experiencing macro trends such as the energy transition, which creates opportunities for investors who do not typically look at the sector. Understanding that the commodity sector is cyclical is also crucial for non-traditional mining investors.
"I think in mining you're finally starting to see some big macro trends [such as the energy transition], and opportunities from the mining sector show up. ... Those big trends, they open a door for family offices, generalists, or anybody who doesn't typically look at the sector." - Steve DJ
Family offices bring a dedicated long-term focus to investing that can benefit the mining industry, and mining companies must understand how to attract this type of investment. Building relationships and alignment with investors, proving milestones, and using technology and better communication are all vital steps that mining companies must take to attract family offices.
"In today's world, ... the ability to be able to go from PDFs to 360 images to videos to 3D models is a way to kind of really stimulate your audience, ... and walk them through a story." - Luke A.
Watch the full panel video below to learn more!
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